While the bill might be able to attract enough Democratic support in the Senate to become law, the Obama administration has said it strongly opposes any attempt to repeal the regulations, and the chairman of the Senate Committee on Health, Education, Labor and Pensions has waged a high-profile fight against for-profit colleges. The state authorization and credit hour rules apply to nonprofit, public and for-profit institutions, but Democrats who voted against the measure characterized it as an effort to erode consumer protections.
Public and private colleges alike saw a steady rise in the proportion of revenues they derived from tuition from 1999 to 2009, the Government Accountability Office said in a report Monday. The report, which examined financial and other data provided by institutions, found that net tuition and fees rose to 22 from 16 percent of total revenue at public colleges and universities, and to 40 from 29 percent at private nonprofit institutions.
WASHINGTON -- President Obama continues to make college affordability a key theme of his domestic policy agenda, but to tailor his message to his audience of the moment. On Monday, addressing the members of the National Governors Association, the president reiterated his views -- highlighted in last month's State of the Union address -- that higher education is increasingly important for individual Americans and for the country's economic future, and that rising prices threaten to put a postsecondary education out of reach for many. But while his speeches to campus leaders have focused on colleges' responsibility to contain their own costs and the prices they charge students (and federal carrots and sticks he might use to elicit that behavior), he used his appearance before the governors to reiterate his belief that states share significant culpability for driving up tuition prices.
"Nothing more clearly signals what you value as a state than the decisions you make about where to invest," President Obama said in urging the governors to "invest more in education." Describing the college affordability problem as a "shared responsibility," he said the administration has sought to do its part by significantly upping federal spending on Pell Grants and other student financial aid. But "[w]e can't just keep on, at the federal level, subsidizing skyrocketing tuition. If tuition is going up faster than inflation -- faster, actually, than health care costs -- then no matter how much we subsidize it, sooner or later we are going to run out of money. So everybody else is going to have to do their part as well."
The president repeated that he had put colleges and universities "on notice" that "if they are not taking some concrete steps to prevent tuition from going up, then federal funding from taxpayers is going to go down." But the states have to do their part by "making higher education a higher priority in your budgets," the president said. "Over two-thirds of students attend public colleges and universities where, traditionally, tuition has been affordable because of state investments.... But more than 40 states have cut funding for higher education over the past year. And this is just the peak of what has been a long-term trend in reduced state support for higher education. And state budget cuts have been among the largest factor in tuition hikes at public colleges over the past decade. So my administration can do more, Congress can do more, colleges have to do more. But unless all of you also do more, this problem will not get solved."
Robert L. Moran, director of federal relations and policy analysis at the American Association of State Colleges and Universities, said his members were heartened by the president's remarks. They signal, he said, that "just as he's keeping our feet to the fire" on controlling public colleges' costs and prices, "he's not backing off the message that he needs to keep the fire on the feet of the state legislators and governors, too, because if state support goes down, tuition goes up." The president has comparatively little sway over state policies or priorities, Moran said, so his rhetoric and use of the bully pulpit matters.
(Side note: While he did so subtly, the president appeared to directly rebut criticism that a potential opponent in November, Rick Santorum, aimed at Obama over the weekend. Santorum called the president a "snob" for, he said, suggesting that all Americans should go to college, saying that there are "good, decent men and women" proud that their skills were "not taught by some liberal college professor." Without identifying the former Republican senator, Obama told the governors that "[w]hen I speak about higher education, we’re not just talking about a four-year degree. We’re talking about somebody going to a community college and getting trained for that manufacturing job that now is requiring somebody walking through the door, handling a million-dollar piece of equipment. And they can’t go in there unless they’ve got some basic training beyond what they received in high school.")
The bill had bipartisan support when the Committee on Education and the Workforce voted on it in July, and has been supported by several higher education associations, including the American Council on Education and the National Association of Independent Colleges and Universities. A related Senate measure, S. 1297, was introduced in June but has not yet been considered by the Committee on Health, Education, Labor and Pensions. Support from Senate Democrats would be crucial for the measure to gain Congressional passage; it is not clear how aggressively the Obama administration would push to defeat the measure, or whether President Obama would veto it.
A draft of new regulations proposed as part of the Education Department's negotiated rule making process for teacher preparation programs would require states to report data on such programs' employment outcomes (for their newly graduated teachers) and student learning outcomes (for those teachers' students). The draft regulations, which will be discussed and modified at the rule making panel's meeting next week, also would require states to make "meaningful differentiations in teacher preparation program performance," based in large part on learning outcomes for their graduates' students. So far, the regulations leave the definition of a "high quality teacher preparation program," a key point in the panel's discussions, to individual states to determine.
The U.S. Education Department's federal student aid office has fallen short in several ways of ensuring that foreign medical schools are meeting federal requirements that their students pass licensing exams, meaning that there is no assurance that student loan funds were "disbursed only to students who attended schools that were eligible to participate in the Federal student loan programs, the department's inspector general said in an audit last month. The audit found that the federal student aid office was "not timely in taking appropriate actions against schools identified as having failed to submit the required pass rate data or meet the pass rate threshold, inconsistent in its methodology for calculating pass rates, and accepted from some foreign medical schools pass rate data that were not complete or were not in the required format."